When you’re self-employed, saving for retirement can be easy to put off. Your income may change from month to month, and there isn’t an employer taking KiwiSaver contributions from your pay.
But self-employed people can still join KiwiSaver and make their own contributions. You can choose how much you contribute and how often you pay, based on the arrangement you have with your KiwiSaver provider.
Understanding how KiwiSaver works can help you decide whether it fits into your long-term financial plans.
Can Self-Employed People Join KiwiSaver?
Yes. You don’t need to work for an employer to join KiwiSaver.
If you’re self-employed, you can join by choosing a KiwiSaver provider and contacting them directly. You and your provider can agree on how you will make your contributions.
You can pay your contributions directly to your provider or through Inland Revenue. If you pay through Inland Revenue, you can make payments through internet banking or set up an automatic payment. You can also change your contribution amount if your circumstances change.
Unlike employees, self-employed people don’t have an employer making compulsory KiwiSaver contributions on their behalf. This means you’ll need to plan your own payments.
How Does the KiwiSaver Government Contribution Work?
If you’re eligible, the government adds money to your KiwiSaver account each year.
Since 1 July 2025, the government has paid 25 cents for every $1 you contribute, up to a maximum of $260.72 a year.
To get the full $260.72, you need to contribute at least $1,042.86 of your own money between 1 July and 30 June.
You can still receive part of the government contribution if you contribute less than $1,042.86. For example:
- Contribute $300, and the government can add $75.
- Contribute $500, and the government can add $125.
- Contribute $1,042.86 or more, and the government can add the full $260.72.
You need to meet certain requirements to receive the government contribution. You must be aged 16 to 65 and have an annual taxable income of $180,000 or less.
The contribution period runs from 1 July to 30 June. If you want the maximum contribution, check your payments before 30 June. Make any extra payment early enough for it to reach your KiwiSaver account before the deadline.
How Much Should You Contribute?
There isn’t one contribution amount that works for every self-employed person.
Your income may change during the year, so you may prefer to make smaller payments throughout the year or larger payments when your business has a stronger month.
Make regular payments
You could set up a weekly or monthly payment so you don’t have to remember to make each contribution.
For example, paying around $20 a week or $87 a month would put you close to the $1,042.86 needed for the maximum government contribution over a full year.
You can make an extra payment later if you need to make up the difference.
Make larger payments when your income is higher
If your income changes from month to month, you may prefer to contribute more when you have a busy period or receive payment for a larger project.
This can give you more flexibility than committing to the same amount every month.
Set aside part of your income
Another option is to put aside a set percentage of the money you earn.
For example, you could decide to put 5% of your business income towards KiwiSaver. The amount you contribute will then rise or fall with your income.
The main thing is to choose a payment approach that you can manage alongside your business and other financial commitments.
What Can You Use KiwiSaver For?
KiwiSaver is mainly designed to help you save for retirement.
You can generally access your KiwiSaver savings when you reach 65. There are also some situations where you may be able to withdraw money earlier, including an eligible first-home purchase, significant financial hardship or serious illness.
Buying your first home
If you’ve been a KiwiSaver member for at least three years, you may be able to withdraw most of your KiwiSaver savings to help buy your first home.
The withdrawal can include your own contributions, government contributions and investment earnings. You must leave at least $1,000 in your KiwiSaver account.
The home must be one you intend to live in. You can’t use a first-home KiwiSaver withdrawal to buy an investment property.
If you’ve owned a home before, you may still qualify in some circumstances. Kāinga Ora has rules for previous homeowners who are in a similar financial position to a first-home buyer.
How Is Your KiwiSaver Money Invested?
KiwiSaver isn’t a regular bank savings account. Your provider invests your money in a fund.
Providers offer different types of funds, including conservative, balanced and growth funds. Each has a different level of investment risk and potential return.
A fund with more growth assets can have larger ups and downs in value. A more conservative fund may have smaller changes in value but can also have lower growth over the long term.
Your choice can depend on factors such as how long you expect to keep your money invested and how comfortable you are with changes in its value.
Your KiwiSaver provider can explain the funds it offers. If you want advice based on your own financial situation, you can speak with a qualified financial adviser.
How Is KiwiSaver Taxed?
KiwiSaver investment income is taxed within the scheme.
The tax rate used depends on your Prescribed Investor Rate (PIR). Your PIR is based on your income and other factors, so the rate can differ between people.
Your KiwiSaver provider generally handles the tax on investment income within the fund.
What Changed With KiwiSaver in 2025 and 2026?
Some important KiwiSaver rules have changed, so older articles may show different figures.
From 1 July 2025, the government contribution changed from 50 cents to 25 cents for every $1 you contribute. The maximum government contribution also dropped from $521.43 to $260.72. People with annual taxable income above $180,000 are no longer eligible for the government contribution.
The default employee and employer contribution rate also changed on 1 April 2026. It increased from 3% to 3.5%. The default rate is scheduled to increase again to 4% from 1 April 2028.
These rates apply to employees and employers. They don’t mean self-employed people have to contribute 3.5% of their income. If you’re self-employed, you arrange your contributions with your KiwiSaver provider.
How Can You Manage KiwiSaver When You’re Self-Employed?
It can help to include KiwiSaver in your regular financial planning rather than treating it as something you deal with only once a year.
You could:
- Set up an automatic payment.
- Check your KiwiSaver balance from time to time.
- Review your contribution amount when your income changes.
- Check your contributions before 30 June if you want to receive the maximum government contribution.
- Give yourself enough time for extra payments to reach your KiwiSaver account.
- Check what fund your money is invested in and understand how it works.
- Keep your KiwiSaver savings separate from the money you need for business expenses and tax.
If your business income changes, you can talk to your KiwiSaver provider about changing your contribution amount.
When Might You Need Professional Advice?
You don’t need professional advice just to join KiwiSaver. Your provider can explain how your scheme works and answer questions about your account.
You may want to speak with a qualified financial adviser if you need help with decisions about your wider financial situation, investment choices or retirement planning.
A financial adviser can look at your personal circumstances and provide advice that general information about KiwiSaver can’t.
Final Thoughts: Securing Your Future Beyond Business
KiwiSaver gives self-employed people a way to put money aside for retirement without relying on an employer to make contributions.
You can choose how much you contribute and how often you pay. If you’re eligible, the government contribution can add to your savings each year. You may also be able to use your KiwiSaver savings to help buy your first home if you meet the withdrawal rules.
KiwiSaver rules can change, so it’s worth checking the current requirements with Inland Revenue or your KiwiSaver provider. Understanding how the scheme works can help you decide how it fits with your business, savings and longer-term plans.
